Customer Experience Rating for Achieving Loyalty & Satisfaction
Keywords:
Customer Experience, Rating, Banking Sector, Malaysia
Abstract
Business organizations are turning to innovative goods, new markets, and inorganic growth prospects to generate income as global marketplaces change dramatically and player competition heats up. However, providing a superior and distinctive customer experience for financial services represents the biggest chance for long-term revenue development. Creating a Customer Experience Rating (CXR), a measurement of customer experience in the Malaysian banking industry is the primary goal of this project. According to the statistical analysis findings, the CXR had a high degree of reliability and proved construct validity by reaching both convergent and discriminant validity. The Malaysian population enjoys positive bank experiences, as indicated by the customer experience rating 7.37. The results of this study can be used by practitioners, managers, and regulators to better understand customer experiences and create marketing strategies that will enhance the operational environment, increase customer loyalty and satisfaction, and foster positive word-of-mouth.
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References
Bagdare, S., & Jain, R. (2013). Measuring retail customer experience. International Journal of Retail & Distribution Management, 41(10), 790-804.
Bhatt, J., & Patel, B. (2020). Exploring customer experience in the service sector to convert customers into advocates: Exploratory research with special reference to Indian retail banks. Our Heritage, 68(1), 9270-9277.
Bueno, E. V., Weber, T. B. B., Bomfim, E. L., & Kato, H. T. (2019). Measuring customer experience in service: A systematic review. The Service Industries Journal, 39(1112), 779-798.
Bustamante, J. C., & Rubio, N. (2017). Measuring customer experience in physical retail environments. Journal of Service Management, 28(5), 884-913.
Chahal, H., & Dutta, K. (2015). Measurement and impact of customer experience in the banking sector. Decision, 42(1), 57-70.
Chauhan, P., & Sarabhai, S. (2018). Customers experience management: Evolution and the paradigm shift in marketing. Business Perspectives, 17(1), 18-34.
Chin, W. W. (1988). The partial least square approach for structural equation modelling. In G. Marcoulides (Ed.), Modern Methods for Business Research, Mahwah, NJ: Lawrence Erlbaum Associates, pp. 295-358.
Churchill, G. J. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64-73.
De Haan, E. V., Verhoef, P. C., & Wiesel, T. (2015). The predictive ability of different customer feedback metrics for retention. International Journal of Research in Marketing, 32(2), 195-206. Harvard Business Review, 88(7/8), 116-22. Commerce, 3(6), 32-49.
Dixon, M., Freeman, K., & Toman, N. (2010). Stop trying to delight your customers. Harvard Business Review, 88(7/8), 116-22.
Fatma, S. (2014). Antecedents and consequences of customer experience management literature review and research agenda. International Journal of Business and Commerce, 3(6), 32-49.
Fernandez, T., & Pinto, T. (2019). Relationship quality determinants and outcomes in retail banking services: The role of customer experience. Journal of Retailing and Consumer Services, 50, 30-41.
Fornell, C., & Cha, J. (1994). Partial least squares. In Bagozzi, R.P. (Ed.), Advanced Methods of Marketing Research. Blackwell, Cambridge, MA, pp. 52-78.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
Garg, R., Rahman, Z., Qureshi, M. N., & Kumar, I. (2012). Identifying and ranking critical success factors of customer experience in banks. Journal of Modelling in Management, 7(2), 201-220.
Garg, R., Rahman, Z., & Qureshi, M. N. (2014). Measuring customer experience in banks: scale development and validation. Journal of Modelling in Management, 9(1), 87-117.
Gefen, D., Rigdon, E. E., & Straub, D. (2011). An update and extension to SEM guidelines for administrative and social science research. MIS Quarterly, 35(1-7).
Grace, D., & O'Cass, A. (2004). Examining service experiences and post-consumption evaluations. Journal of Services Marketing, 18(6), 450-461.
Hair Jr., J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Los Angeles, CA. Squares Structural Equation Modelling (PLS-SEM), 2nd Edition. Sage Publications, Los Angeles, CA.
Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modelling. Journal of the Academy of Marketing Science, 43(1), 115-135.
Hirschman, E. C., & Holbrook, M. B. (1982). Hedonic consumption: emerging concepts, method and proposition. Journal of Marketing, 46, 92-101.
Holbrook, M. B., & Hirschman, E. C. (1982). The experiential aspects of consumption: consumer fantasies, feelings and fun. Journal of Consumer Research, 9, 132-140.
Imbug, N., Ambad, S. N. A., & Bujang, I. (2018). The Influence of customer experience on customer loyalty in the telecommunication industry. International Journal of Academic Research in Business and Social Sciences, 8(3), 103–116.
Ismail, A. R., Melewar, T. C., Lim, L., & Woodside, A. (2011). Customer experiences with brands: Literature review and research directions. The Marketing Review, 11(3), 205225.
Jain, R., Aagja, J., & Bagdare, S. (2017). Customer experience–a review and research agenda. Journal of Service Theory and Practice, 27(3), 642-662.
Jain, R., & Bagdare, S. (2009). Determinants of customer experience in new retail format stores. Journal of Marketing & Communication, 5(2), 34-44.
Kim, S., Cha, J., Knutson, B. J., & Beck, J. A. (2011). Development and testing of the consumer experience index (CEI). Managing Service Quality, 21(2), 112-132.
Klaus, P., & Maklan, S. (2013). Toward a better measure of customer experience. International Journal of Market Research, 55(2), 227-246.
Klaus, P., Gorgoglione, M., Buonamassa, D., Panniello, U., & Nguyen, B. (2013). Are you providing the right customer experience? The case of Banca Popolare di Bari. International Journal of Bank Marketing, 31(7), 506-528.
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80, 69-96.
Lywood, J., Stone, M., & Ekinci, Y. (2009). Customer experience and profitability: An application of the empathy rating index (ERIC) in UK call centres. Journal of Database Marketing & Customer Strategy Management, 16, 207-214.
Maklan, S., & Klaus, P. (2011). Customer experience: are we measuring the right thing? International Journal of Market Research, 53(6), 771-792.
Mbama, C. (2018). Digital banking, customer experience and bank financial performance: UK customers' perceptions. International Journal of Bank Marketing, 36(2), 230-255.
Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard Business Review, 85(2), 116-126.
Nunnally, J. (1978). Psychometric Theory (2nd ed.). New York: McGraw-Hill. Pine II, B. J., & Gilmore, J. H. (1998). Welcome to the experience economy. *Harvard Business Review, 97-105.
Pine II, B. J., & Gilmore, J. H. (1999). The Experience Economy: Work Is Theatre and Every Business a Stage. Boston, MA: Harvard Business School Press.
Quoquab, F., Mohammad, J., & Sukari, N. N. (2019). A multiple-item scale for measuring “sustainable consumption behavior” construct. Asia Pacific Journal of Marketing and Logistics, 31(4), 791-816.
Ramayah, T., Cheah, J. H., Chuah, F., Ting, H., & Memon, M. A. (2018). Partial Least Pearson. Squares Structural Equation Modeling (PLS-SEM) Using SmartPLS 3.0. An Updated and Practical Guide to Statistical Analysis (2nd edition). Kuala Lumpur, Malaysia: Pearson.
Reichheld, F. F. (2003). The one number you need to grow. *Harvard Business Review, 1-11.
Rose, S., Hair, N., & Clark, M. (2011). Online customer experience: a review of the business-to-consumer online purchase context. International Journal of Management Reviews, 13, 24-39.
Saleh, A., & Bista, K. (2017). Examining factors impacting online survey response rates in educational research: Perceptions of graduate students. Journal of Multidisciplinary Evaluation, 13(29), 63-74.
Schmitt, B. (1999). Experiential marketing. Journal of Marketing Management, 15(1/3), 5367.
Sekaran, U. (2003). Research Methods for Business: A Skill-building Approach. New York: John Wiley & Sons. Sharma,
Skogland, I., & Siguaw, J. A. (2004). Are your satisfied customers loyal? Cornell Hotel and Restaurant Administration Quarterly, 45(3), 221-234.
Soper, D. S. (2020). A-priori Sample Size Calculator for Structural Equation Models [Software]. Available from http://www.danielsoper.com/statcalc
Springer, T., Azzarello, D., & Melton, J. (2011). What It Takes to Win with Customer Experience. Bain & Company, Inc.
Um, S., Chon, K., & Ro, Y. (2006). Antecedents of revisit intention. Annals of Tourism Research, 33(4), 1141-1158.
Uhlig, C. E., Seitz, B., Eter, N., Promesberger, J., & Busse, H. (2014). Efficiencies of internet-based digital and paper-based scientific surveys and the estimated costs and time for different-sized cohorts. PLoS ONE, 9(10).
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1-17.
Walter, U., Edvardsson, B., & Ostrom, A. (2010). Drivers of customers' service experiences: a study in the restaurant industry. Managing Service Quality, 20(3), 236-258.
Walsh, G., & Beatty, S. E. (2007). Customer-based corporate reputation of a service firm: scale development and validation. Journal of the Academy of Marketing Science, 35(1), 127-143.
Bhatt, J., & Patel, B. (2020). Exploring customer experience in the service sector to convert customers into advocates: Exploratory research with special reference to Indian retail banks. Our Heritage, 68(1), 9270-9277.
Bueno, E. V., Weber, T. B. B., Bomfim, E. L., & Kato, H. T. (2019). Measuring customer experience in service: A systematic review. The Service Industries Journal, 39(1112), 779-798.
Bustamante, J. C., & Rubio, N. (2017). Measuring customer experience in physical retail environments. Journal of Service Management, 28(5), 884-913.
Chahal, H., & Dutta, K. (2015). Measurement and impact of customer experience in the banking sector. Decision, 42(1), 57-70.
Chauhan, P., & Sarabhai, S. (2018). Customers experience management: Evolution and the paradigm shift in marketing. Business Perspectives, 17(1), 18-34.
Chin, W. W. (1988). The partial least square approach for structural equation modelling. In G. Marcoulides (Ed.), Modern Methods for Business Research, Mahwah, NJ: Lawrence Erlbaum Associates, pp. 295-358.
Churchill, G. J. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64-73.
De Haan, E. V., Verhoef, P. C., & Wiesel, T. (2015). The predictive ability of different customer feedback metrics for retention. International Journal of Research in Marketing, 32(2), 195-206. Harvard Business Review, 88(7/8), 116-22. Commerce, 3(6), 32-49.
Dixon, M., Freeman, K., & Toman, N. (2010). Stop trying to delight your customers. Harvard Business Review, 88(7/8), 116-22.
Fatma, S. (2014). Antecedents and consequences of customer experience management literature review and research agenda. International Journal of Business and Commerce, 3(6), 32-49.
Fernandez, T., & Pinto, T. (2019). Relationship quality determinants and outcomes in retail banking services: The role of customer experience. Journal of Retailing and Consumer Services, 50, 30-41.
Fornell, C., & Cha, J. (1994). Partial least squares. In Bagozzi, R.P. (Ed.), Advanced Methods of Marketing Research. Blackwell, Cambridge, MA, pp. 52-78.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
Garg, R., Rahman, Z., Qureshi, M. N., & Kumar, I. (2012). Identifying and ranking critical success factors of customer experience in banks. Journal of Modelling in Management, 7(2), 201-220.
Garg, R., Rahman, Z., & Qureshi, M. N. (2014). Measuring customer experience in banks: scale development and validation. Journal of Modelling in Management, 9(1), 87-117.
Gefen, D., Rigdon, E. E., & Straub, D. (2011). An update and extension to SEM guidelines for administrative and social science research. MIS Quarterly, 35(1-7).
Grace, D., & O'Cass, A. (2004). Examining service experiences and post-consumption evaluations. Journal of Services Marketing, 18(6), 450-461.
Hair Jr., J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Los Angeles, CA. Squares Structural Equation Modelling (PLS-SEM), 2nd Edition. Sage Publications, Los Angeles, CA.
Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modelling. Journal of the Academy of Marketing Science, 43(1), 115-135.
Hirschman, E. C., & Holbrook, M. B. (1982). Hedonic consumption: emerging concepts, method and proposition. Journal of Marketing, 46, 92-101.
Holbrook, M. B., & Hirschman, E. C. (1982). The experiential aspects of consumption: consumer fantasies, feelings and fun. Journal of Consumer Research, 9, 132-140.
Imbug, N., Ambad, S. N. A., & Bujang, I. (2018). The Influence of customer experience on customer loyalty in the telecommunication industry. International Journal of Academic Research in Business and Social Sciences, 8(3), 103–116.
Ismail, A. R., Melewar, T. C., Lim, L., & Woodside, A. (2011). Customer experiences with brands: Literature review and research directions. The Marketing Review, 11(3), 205225.
Jain, R., Aagja, J., & Bagdare, S. (2017). Customer experience–a review and research agenda. Journal of Service Theory and Practice, 27(3), 642-662.
Jain, R., & Bagdare, S. (2009). Determinants of customer experience in new retail format stores. Journal of Marketing & Communication, 5(2), 34-44.
Kim, S., Cha, J., Knutson, B. J., & Beck, J. A. (2011). Development and testing of the consumer experience index (CEI). Managing Service Quality, 21(2), 112-132.
Klaus, P., & Maklan, S. (2013). Toward a better measure of customer experience. International Journal of Market Research, 55(2), 227-246.
Klaus, P., Gorgoglione, M., Buonamassa, D., Panniello, U., & Nguyen, B. (2013). Are you providing the right customer experience? The case of Banca Popolare di Bari. International Journal of Bank Marketing, 31(7), 506-528.
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80, 69-96.
Lywood, J., Stone, M., & Ekinci, Y. (2009). Customer experience and profitability: An application of the empathy rating index (ERIC) in UK call centres. Journal of Database Marketing & Customer Strategy Management, 16, 207-214.
Maklan, S., & Klaus, P. (2011). Customer experience: are we measuring the right thing? International Journal of Market Research, 53(6), 771-792.
Mbama, C. (2018). Digital banking, customer experience and bank financial performance: UK customers' perceptions. International Journal of Bank Marketing, 36(2), 230-255.
Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard Business Review, 85(2), 116-126.
Nunnally, J. (1978). Psychometric Theory (2nd ed.). New York: McGraw-Hill. Pine II, B. J., & Gilmore, J. H. (1998). Welcome to the experience economy. *Harvard Business Review, 97-105.
Pine II, B. J., & Gilmore, J. H. (1999). The Experience Economy: Work Is Theatre and Every Business a Stage. Boston, MA: Harvard Business School Press.
Quoquab, F., Mohammad, J., & Sukari, N. N. (2019). A multiple-item scale for measuring “sustainable consumption behavior” construct. Asia Pacific Journal of Marketing and Logistics, 31(4), 791-816.
Ramayah, T., Cheah, J. H., Chuah, F., Ting, H., & Memon, M. A. (2018). Partial Least Pearson. Squares Structural Equation Modeling (PLS-SEM) Using SmartPLS 3.0. An Updated and Practical Guide to Statistical Analysis (2nd edition). Kuala Lumpur, Malaysia: Pearson.
Reichheld, F. F. (2003). The one number you need to grow. *Harvard Business Review, 1-11.
Rose, S., Hair, N., & Clark, M. (2011). Online customer experience: a review of the business-to-consumer online purchase context. International Journal of Management Reviews, 13, 24-39.
Saleh, A., & Bista, K. (2017). Examining factors impacting online survey response rates in educational research: Perceptions of graduate students. Journal of Multidisciplinary Evaluation, 13(29), 63-74.
Schmitt, B. (1999). Experiential marketing. Journal of Marketing Management, 15(1/3), 5367.
Sekaran, U. (2003). Research Methods for Business: A Skill-building Approach. New York: John Wiley & Sons. Sharma,
Skogland, I., & Siguaw, J. A. (2004). Are your satisfied customers loyal? Cornell Hotel and Restaurant Administration Quarterly, 45(3), 221-234.
Soper, D. S. (2020). A-priori Sample Size Calculator for Structural Equation Models [Software]. Available from http://www.danielsoper.com/statcalc
Springer, T., Azzarello, D., & Melton, J. (2011). What It Takes to Win with Customer Experience. Bain & Company, Inc.
Um, S., Chon, K., & Ro, Y. (2006). Antecedents of revisit intention. Annals of Tourism Research, 33(4), 1141-1158.
Uhlig, C. E., Seitz, B., Eter, N., Promesberger, J., & Busse, H. (2014). Efficiencies of internet-based digital and paper-based scientific surveys and the estimated costs and time for different-sized cohorts. PLoS ONE, 9(10).
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1-17.
Walter, U., Edvardsson, B., & Ostrom, A. (2010). Drivers of customers' service experiences: a study in the restaurant industry. Managing Service Quality, 20(3), 236-258.
Walsh, G., & Beatty, S. E. (2007). Customer-based corporate reputation of a service firm: scale development and validation. Journal of the Academy of Marketing Science, 35(1), 127-143.
Published
2024-09-22
How to Cite
Bujang, S., Abdullah, F., & Abd Rashid, M. H. (2024). Customer Experience Rating for Achieving Loyalty & Satisfaction. Information Management and Business Review, 16(3(I), 550-559. https://doi.org/10.22610/imbr.v16i3(I).4007
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Research Paper
Copyright (c) 2024 Safian Bujang, Firdaus Abdullah, Muhammad Hafiz Abd Rashid
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